Matrixx Shares Recover After Recalling Zicam

WASHINGTON (AP) — Shares of cold remedy maker Matrixx Initiatives Inc. regained ground Wednesday after plummeting more than 70 percent a day earlier on government action against the company's brand of nasal cold remedies.

On Tuesday the Food and Drug Administration warned consumers not to use the companies Cold Remedy Nasal products due to hundreds of reports of patients losing their sense of smell. Shares of the Scottsdale, Ariz.-based company plunged to a 52-week low after the FDA announcement, losing more than two-thirds their value.

Cold Remedy Nasal products accounted for 40 percent of the company's sales last year.

FDA regulators said the products contain zinc, an ingredient that may damage nerves in the nose needed for smell.

Matrixx defended the safety of its products, but said late in the day it would withdraw the relevant brands from the market and offer refunds to consumers.

Company shares rose 33 cents, or 5.7 percent, to $6.11 in trading on Wednesday.